- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 11. Hypothesis Testing
- Subject 13. Parametric and Non-Parametric Tests

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**CFA Practice Question**

Which of the following would be considered a nonparametric test?

II. A test to determine if the variances of two populations are equal.

III. A test to determine if the means of two populations are equal.

IV. A test dealing with a data set that's made up of rankings, as opposed to nominal values.

I. A test to determine if two events are truly independent of each other.

II. A test to determine if the variances of two populations are equal.

III. A test to determine if the means of two populations are equal.

IV. A test dealing with a data set that's made up of rankings, as opposed to nominal values.

A. I and IV

B. II and III

C. I and III

**Explanation:**Any test that deals with the mean or the variance of the population is regarded to be a "parametric" test. Consequently, all other tests would be regarded as "nonparametric" tests.

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**User Contributed Comments**
1

User |
Comment |
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edrei7 |
Parametric tests are concerned with parameters and deals with assumptions. |